The used car market has become immensely popular in the last few years. In FY'20, the used car market in India was 50 per cent larger than the new car market and by FY'25, the used car market will be approximately 90 per cent larger than the new car market, with total used car sales forecast at 7.1 million units, having a compounded annual growth rate of 11 per cent. And while most people do not shy away from buying pre-owned vehicles, there are still a few myths surrounding a used car purchase. We list out few such myths and bust them so that our readers are devoid of any bias when they are out in the market to purchase a pre-owned car.
(Used cars offer more value for money than buying a new car)
We can tell you with certainty that a used car purchase is always a better deal, offering better value for money than buying a new car. In most cases, if you have a certain budget in mind, you are likely to get a used car from a segment or two above a new car that you have in mind. For example, a budget of Rs. 10 lakh with get you a new top-spec Tata Punch, but if you look at the used car segment, you could get your hands on a Tata Nexon or a Hyundai Venue, which is from a segment above. A car that is a segment above, will always be high on quality, features and performance. So yes, buying a used car will always have better value for money than buying a new car.
(It may be difficult but not impossible to find a high quality pre-owned car)
It is true that not all used cars are high on quality. But with enough research, it is not impossible to find a used car that is in excellent shape. A well-maintained used car is likely to be good in terms of quality, of course, with regular wear and tear. But the fact is that it may require a bit of research and hard work in order to find the right model as per your budget and requirement.
(The mode of payment doesn't matter when buying a used car)
Not really! You are likely to get the same discount on a pre-owned car irrespective of your payment mode, be it cash, loan or cheque. Getting a loan for used cars too is like how one would get a loan for new cars. The rate of interest and the duration of the loan are the key factors. The only benefit of making full cash payment is that you save marginally on interest and are free from the hassle of EMIs.
(One must always look to buy a well-maintained used car)
Some used car models may suffer from this but this cannot be generalised. All one needs to do is find the right model, which is well-maintained and has proper service history throughout the period of ownership. If you get a car that has low mileage then you don't even have to worry about running the car in, like you would in new cars. A well-maintained pre-owned car will be at par with a new car in terms of running cost and fuel efficiency.
(Buying a used car with a certain budget means you can look to buy a car from a segment above, than what you would have bought if you were buying a new car )
You have better chances of getting a used car with more features in a particular budget rather buying a new car. Like we mentioned in the first point, if you have a budget of, say, Rs. 10 lakh, you could either buy a brand new Tata Punch or get a used model from a segment or two above, which will have more features. A brand new Maruti Suzuki Alto or a used Maruti Suzuki S-Presso will have a similar price bracket, but the S-Press of course will have more features. It also depends on the segment that you are targeting.
